Trends, Practical Insights, and Recommendations
Welcome to our greenventors "Behind the Scenes" series, in which we provide in-depth insights into the developments and challenges of the eMobility industry. Today we are pleased to welcome Adrian Brinster, Strategy Manager and head of group-wide strategy at E.ON Drive Infrastructure, and Dr. Andreas Pfeiffer, Managing Partner of greenventors GmbH. Both experts have been involved in the development of eMobility for over a decade and bring extensive experience from the industry. Adrian Brinster heads the global strategy of E.ON Drive Infrastructure and has extensive experience in international projects along the entire eMobility value chain. Dr. Andreas Pfeiffer has been providing strategic and operational support for the development and further development of various EMP, CPO and roaming platforms in eMobility for over 15 years.
Good afternoon Adrian and Andreas, thank you for taking the time for this interview. Could you first give us an overview of the current market for electric vehicles and charging infrastructure in Europe?
Adrian Brinster: Of course, I'd be happy to. The market for electric vehicles is currently stagnating in Germany, which is due, among other things, to the reduction in subsidy programs. In June 2024, the share of electric cars in all new car registrations was 14.6 percent. This is less than in the same period last year. According to the Federal Motor Transport Authority, BEVs still accounted for 18.9 percent of all new registrations in June 2023. At the same time, however, we are seeing continuous growth in other European markets, such as Norway and the Netherlands. According to Roland Berger's 2024 EV Charging Index, charging infrastructure is growing in all markets, with a particularly strong increase in high-performance charging infrastructure in recent years.
Dr. Andreas Pfeiffer: Exactly, and it was also a time when industry collaboration to create standards, such as connector and communication standards, was particularly important. We also saw the introduction of roaming agreements that gave EV drivers more flexibility and access to different charging infrastructures. Today, the focus is more on densifying the network, integrating charging into everyday life and improving the customer experience, for example by introducing Plug & Charge or using credit card terminals for direct payment.
What do you think are the main challenges and opportunities for CPOs in the current market situation?
Adrian Brinster: One of the biggest challenges is the fact that the supply of charging stations exceeds demand. According to the European Automobile Manufacturers' Association , there are now over 600,000 public charging points in Europe. An increase of 80% has been recorded, especially in the area of DC charging infrastructure. A study by the European Federation for Transport and Environment shows that the majority of EU countries have already reached the AFIR targets for public charging infrastructure set for 2024 by the end of 2023. This leads to low utilization rates, which can represent a financial burden for many operators. In the next three to five years, I expect a consolidation phase in which many CPOs will leave the market. To survive this difficult period, companies must implement extremely efficient operations and stringent network management. In addition, significant financial capacity is required to survive low utilization rates for several years and to consolidate other market participants.
Dr. Andreas Pfeiffer: It is also important to emphasize that the entire IT infrastructure is becoming increasingly important to optimize processes and operations. Data analytics and the use of big data make it possible to predict usage patterns, optimize station placement and improve operational efficiency. We are also seeing increasing electrification of new vehicle types such as taxis, vans, buses and trucks, which places new demands on the charging infrastructure. According to the International Energy Agency's Global EV Outlook 2023, the number of electric commercial vehicles is expected to increase by 50% over the next five years.
How has the location strategy of CPOs changed over the years?
Adrian Brinster: In the past, the focus was on very attractive locations, such as proximity to the motorway, to cover the en-route charging use case. Today we are seeing a shift towards densification of the network, where not only proximity to the motorway is crucial, but destination locations, such as supermarkets, are also becoming increasingly important. Charging is becoming increasingly integrated into everyday life, and CPOs are increasingly acquiring their own land to build charging hubs at strategically selected locations. According to Statista, in 2023, over 50% of new charging stations in Europe will be installed at such destination locations.
Dr. Andreas Pfeiffer: Correct, and we are also seeing an increased focus on the customer experience. More sophisticated location concepts with roofing, sanitary facilities, retail concepts and lounges are becoming more common. User-friendly apps and the reliability of the charging infrastructure are also decisive factors. In addition, rewards and membership programs are becoming increasingly important, especially for CPOs, in order to retain more customers and attract them with additional services such as paying at spot market prices.
What trends and developments do you expect for the future of CPOs?
Dr. Andreas Pfeiffer: I expect a strong market consolidation, driven by network size and operational excellence. We are already seeing that various CPOs are exploring new ways of financing, such as establishing joint ventures, additional private investors and M&A activities. In the long term, CPOs with staying power will prevail and survive on the market. According to forecasts, less than half of the currently active CPOs will survive by 2030.
Adrian Brinster: Energy management will also play an increasingly important role. Expanding sites to include stationary battery storage can avoid grid bottlenecks and generate additional revenue on energy and power markets. Integration into the holistic energy system with PV and wind will also become more important. In addition, flexible pricing strategies based on demand, location and time will be introduced to optimize the utilization of the charging infrastructure. The use of big data to predict usage patterns and optimize operations will also continue to increase.
Adrian, you mentioned that energy management will play an increasingly important role. Can you explain in more detail how stationary battery storage can bypass grid bottlenecks and generate additional revenue on energy and power markets?
Adrian Brinster: Of course. Stationary battery storage systems offer the possibility of storing excess energy and feeding it back into the grid when needed or using it for charging infrastructure. This is particularly useful for avoiding grid bottlenecks that can arise when many electric vehicles are charged at the same time. In addition, by storing and specifically using energy from renewable sources such as photovoltaics (PV) and wind, we can make charging infrastructure more sustainable. In the energy markets, we can generate additional income by trading stored energy. For example, we can sell electricity at times of high demand when prices are higher and buy it cheaply at times of low demand or overproduction.
What role does integration into the holistic energy system play and how will this influence pricing strategies and the utilization of charging stations?
Adrian Brinster: Integration into the holistic energy system means that our charging infrastructure is not viewed in isolation, but as part of a larger network that includes renewable energy sources, storage solutions and intelligent control. This integration enables us to maximize energy efficiency and reduce costs. Flexible pricing strategies play a crucial role here. By dynamically adjusting prices based on demand, location and time, we can optimize the utilization of our charging stations. For example, when demand is high, we can increase prices to create an incentive to charge at less busy times. Conversely, we can lower prices when demand is low to increase utilization.
Andreas, how do you see the role of energy management and dynamic pricing models in the context of eMobility and the challenges for charging station operators?
Dr. Andreas Pfeiffer: Energy management and dynamic pricing models are crucial for the efficiency and profitability of the charging infrastructure. In order to be able to procure electricity cost-effectively in the context of eMobility, a suitable strategy based on futures and spot market trading is required, as well as a data-based, dynamic demand forecast. This must take into account the typical charging behavior of user groups, local conditions of the charging infrastructure and the increasing number of electric vehicles. We have seen that an accurate forecast of electricity demand and adaptation to dynamic pricing models enable more efficient utilization of the infrastructure and higher revenues.
What specific challenges do you see in practice when it comes to integrating renewable energies and using big data to optimize operational processes?
Dr. Andreas Pfeiffer: One of the biggest challenges is coordination between different players in the energy market and the emobilty market. Digital networking is essential to create an efficient ecosystem for eMobility. By exchanging data, energy markets, e-mobility service providers and CPOs can work together to expand charging infrastructure, forecast and manage electricity demand, improve the customer experience and integrate renewable energies. One example of this is the use of big data to predict usage patterns and optimize operations. However, this requires robust IT systems, advanced analysis tools and close cooperation between all parties involved.
Adrian, how do you use big data to predict usage patterns and optimize operations in this context?
Adrian Brinster: Our data platform allows us to use tools such as machine learning to collect and analyze large amounts of data to identify usage patterns and trends. This data comes from various sources, including charging infrastructure, energy consumption data, and external factors such as holiday and vacation periods. With this information, we can build predictive models that help us forecast demand and respond accordingly. For example, we can predict when and where demand will be highest and ensure that sufficient capacity is available. In addition, by analyzing this data, we can improve the efficiency of our operations by optimizing maintenance times and identifying potential failures early. This helps to increase the reliability of our infrastructure and increase customer satisfaction.
Andreas, how can digital networking and data-based business models help charging station operators meet the challenges of the energy market?
Dr. Andreas Pfeiffer: Digital networking creates an efficient ecosystem for eMobility. By exchanging data, energy markets, e-MSPs and CPOs can work together to expand charging infrastructure, forecast and manage electricity demand, improve customer experience and integrate renewable energies. Standardization of systems and their networking are particularly important. This is the only way to ensure interoperability and scalability to ensure smooth operation of the eMobility system. At greenventors, we support companies in developing and implementing these digital and data-based business models. This includes, among other things, the use of GHG quotas and the integration of spot market procurement and dynamic pricing to maximize profit margins and manage electricity price risk.
How important is collaboration with different stakeholders and what are the key lessons that can be transferred from more mature markets to new markets?
Adrian Brinster: Collaboration with various stakeholders is essential. We have learned that close cooperation with governments, network operators, energy suppliers and car manufacturers is necessary to build an efficient and user-friendly charging infrastructure. We can learn a lot from more mature markets, especially when it comes to choosing locations and integrating charging infrastructure into everyday life. It is also important that we use mature operating concepts and technologies to minimize charging infrastructure downtime and maximize customer satisfaction.
Dr. Andreas Pfeiffer: Absolutely. It is important to understand the different needs and requirements of the markets. In more mature markets, we have seen that the reliability and usability of the charging infrastructure are crucial. These learnings can be transferred to new markets to create a solid basis for scaling the charging infrastructure while improving the customer experience.
Andreas, the AFIR directive requires the installation of payment terminals at charging stations. How do you assess this development, especially with regard to the roaming business model?
Dr. Andreas Pfeiffer: The AFIR Directive is a significant step forward as it facilitates ad hoc payment at charging stations and thus makes the use of electric vehicles more attractive for end customers. As a pioneer in roaming, I supported the development of roaming platforms such as e-clearing.net and Hubject because at the time we assumed that there would be hundreds of CPO and EMP platforms.
And that is not the case now? What impact does this have on the CPO's business?
Dr. Andreas Pfeiffer: However, the market has developed differently. Today we have perhaps ~20 relevant platforms on which the CPO business is mapped. On the EMP side, there are not significantly more. Here, uniform technical standards and flexible tariff systems are no longer required. We are therefore also observing that many CPOs are starting to prefer their own payment solutions, as they can use them to build direct customer relationships and control pricing better and more directly. Payment terminals at the charging stations enable CPOs to interact directly with end customers, which is an advantage at high-frequency locations, for example, in order to synchronize energy purchasing and pricing.
You also mentioned technical solutions. Weren't payment terminals possible before?
Dr. Andreas Pfeiffer: Technically, payment terminals were possible earlier, but in the market situation at the time they would have caused additional costs, which in our view can only be economically represented with the introduction of HPC charging infrastructure. Regulation through the AFIR Directive has now become necessary in order to support widespread introduction and to level out the poorer level of market development.
Adrian, as a multinational CPO, how do you view the role of EMPs and the impact of the AFIR directive on your business model?
Adrian Brinster: The role of EMPs is evolving as the market and regulatory landscape change, particularly with the introduction of the AFIR directive. While the traditional EMP business model is being challenged by the need for greater transparency and real-time data, it remains a critical component for specific segments such as fleet customers. As a multinational CPO, we are committed to providing up-to-date information on our charging infrastructure across all platforms, in line with AFIR requirements. We also see a growing trend towards spot-market-based pricing at charging stations, which requires us to act as energy purchasers at each location. This evolution in the market highlights the need for EMPs to innovate and adapt, ensuring they continue to add value in this dynamic environment.
Finally, what does this regulation mean for the future of the roaming business model?
Dr. Andreas Pfeiffer: The introduction of payment terminals makes it possible to avoid additional margins that intermediaries could capture in the roaming business. It is now becoming a market question as to which models make sense in the long term. Direct customer relationships, control over pricing, cash flow advantages and increased customer acceptance are clear advantages of the direct payment approach from the perspective of a charging station operator who has made significant investments. Nevertheless, roaming models offer advantages, particularly in the fleet business, and are certainly justified.
Adrian, can you give a concrete example from practice that illustrates this approach?
Adrian Brinster: Yes, of course. We recently ran a pilot project for dynamic pricing in Copenhagen. This project shows how we as a CPO can directly control pricing to optimize the utilization of our charging infrastructure and offer fair prices to customers. In this project, we were able to double the number of discounted charging sessions over the course of the project through dynamic pricing.
What specific advantages do you see from the direct payment solution in this project?
Adrian Brinster: The direct payment approach has clear advantages: It enables a closer customer relationship and prevents intermediaries from reaping additional margin advantages that could not otherwise be passed on to the customer. In Copenhagen, we were able to increase capacity utilization through dynamic pricing while simultaneously increasing customer satisfaction. Customers benefit from transparent and fair prices that respond to current demand in real time. In this project, payment was not yet made directly by credit card, but via a direct webpage payment. Nevertheless, it has been shown that this is exactly what customers want, as it also allows specific demands to be controlled.
How was the project in Copenhagen received by customers and what impact does it have on your future strategies?
Adrian Brinster: The project was very well received. Customers appreciate the transparency and fair prices that we can offer through dynamic pricing. These positive experiences encourage us to implement similar approaches in other markets, especially in the Nordics, which are often used as pioneer markets for implementing new approaches. We have seen that customer satisfaction has increased. We want to transfer this strategy to other European cities in order to further optimize our business models and meet customer needs.
Dr. Andreas Pfeiffer: Let me add here that in this project there was no direct payment by credit card or plug-n-charge, but rather the customers had to act in the traditional way via a web page. Imagine the enormous improvement in the customer journey that is possible here and once again underlines the clear advantage of a direct relationship between CPOs and customers. From a purely commercial perspective, roaming-based approaches offer no advantage for the customer or business value.
In our interview, Adrian Brinster and Dr. Andreas Pfeiffer examine the current challenges and opportunities in the eMobility industry. They discuss the stagnating registration figures for electric vehicles in Germany, the growing charging infrastructure in Europe and the changing location strategies of CPOs. The importance of energy management, dynamic pricing models and digital networking is also highlighted. The experts emphasize the advantages of payment terminals and direct payment solutions at charging stations in order to increase customer satisfaction and optimize the utilization of the charging infrastructure. A pilot project in Copenhagen serves as a concrete example of the successful implementation of these approaches and underlines future strategies for the further development of eMobility.